Foreclosures
Foreclosure is the legal process by which a lender reclaims a property from a borrower who has defaulted on their mortgage. When a borrower stops making their mortgage payments, the lender can initiate foreclosure proceedings to take ownership of the property and sell it to recover the unpaid loan balance. Continue Reading Below
Encyclopedia Articles
Discover the definition of financial terms related to foreclosures.
Deed of Trust: What It Is, How It Differs from a Mortgage, and How Foreclosure Works
Andrew Latham
The Judicial Foreclosure Process: Understanding, Timelines, and Considerations
Abi Bus
Deed in Lieu of Foreclosure Explained: Pros, Cons, and Alternatives
Silas Bamigbola
What is Preforeclosure and How Does It Work?
Bryce Sanders
Notice of Default: Definition, Process, and Consequences
Rasana Panibe
What is Mortgage Default? Everything You Need to Know
Emily Africa
What Is a Sheriff's Sale? When It's Used, Process, and Proceeds
SuperMoney Team
What Is Foreclosure? Definition, Process, and Credit Impact
Andrew Latham
Power of Sale: Understanding, Implications, and Practical Examples
Silas Bamigbola
Loss Mitigation: What It Means and How It's Used
Benjamin Locke
Learn About Foreclosures
How To Avoid Bankruptcy
Lara Jacobs
Options When A Spouse Dies With A Reverse Mortgage
Benjamin Locke
How To Handle Reverse Mortgage Foreclosure
Benjamin Locke
Mortgagee vs Mortgagor: What's the Difference?
Benjamin Locke
Tax Lien Investing: A Beginner's Guide to Profiting from Property Tax Liens
Benjamin Locke
What Happens If You Don't Pay Property Taxes?
Andrew Latham
Reverse Mortgage Scams: Red Flags Every Homeowner Should Know
Andrew Latham
Cash-Out Refinance After Bankruptcy or Foreclosure: Your Path Back to Home Equity
Andrew Latham
Mortgage Debt Forgiveness: Do You Qualify For Tax Relief?
Jessica Walrack
Deed of Trust vs. Mortgage: 5 Important Differences
Camilla Smoot
How To Buy Foreclosed Homes With No Money
Ossiana Tepfenhart
Who Really Triggered the U.S. Housing Market Crash? New Study Reveals Shocking Answer
Jessica Walrack
Can I Sell My House While in Forbearance?
Camilla Smoot
How Does a Reverse Mortgage Work When You Die?
Ossiana Tepfenhart
The Definitive Guide to Mortgage Relief
Andrew Latham
About Foreclosures
- The lender files a lawsuit against the borrower to establish their right to foreclose on the property.
- The court holds a hearing to determine whether the borrower is in default and whether the lender has the right to foreclose.
- If the court rules in the lender's favor, it issues a foreclosure judgment, which allows the lender to proceed with selling the property.
- The property is sold at a public auction, with the proceeds from the sale used to pay off the borrower's mortgage debt. Any remaining balance may be owed to the borrower.